OptionsHouse

Options Trading News

June 14, 2013  Fri 7:14 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Stocks are little-changed this morning after a big rally yesterday.

S&P 500 futures are fractionally lower and European indexes are seesawing in a range, though mostly positive. Asia gained in the overnight session, led by a 2 percent move in Tokyo.

The S&P 500 has been pulling back in the last four weeks, consolidating after a blistering seven-month rally drove the index into record territory earlier this year. Yesterday's 1.5 percent surge was triggered by a strong retail-sales report and lower-than-expected initial jobless claims. Automobile sales were especially robust, showing that Americans have the confidence to spend on big-ticket items.

Attention is now likely to focus on the next Federal Reserve meeting on Wednesday. Worries that Chairman Ben Bernanke would reduce monetary stimulus drove up interest rates last month and spooked investors. Today's producer price index at 8:30 a.m. ET and Tuesday's consumer price index will provide inflation data and could shape expectations about the central bank's next move. Veteran Fed watcher Jon Hilsenrath wrote in today's Wall Street Journal that Bernanke will take a dovish stance next week.

The other big economic report today is the University of Michigan's consumer sentiment number at 9:55 a.m. ET. Industrial production will also be announced at 9:15 a.m. ET.

optionMONSTER's reseachLAB market screener shows strength over the last month in companies selling expensive items such as jewelry and motor homes. Telecom suppliers have also been strong amid indications that big carriers will increase capital spending. (Yesterday saw bullish call buying in Finisar and Tellabs.)

Weak economic growth in emerging markets have hurt companies exposed to the global economy, including coal miners and basic metals.

Stocks that are sensitive to higher interest rates, especially utilities and real-estate investment trusts, have also lagged in the last month. They may rebound if rates fall.

Commodities are modestly higher this morning. Oil and silver both advanced half a percent, copper is up about one-third of a percent, and grains are mixed. Foreign-exchange trading is more bearish, with the euro down and the Japanese yen higher across the board.

The yen is important to watch because a big decline in the currency earlier this year drove up the Nikkei index, supporting sentiment globally.

In company-specific news, Smith & Wesson is indicated higher after pre-announcing strong quarterly results. Restoration Hardware also climbed after its numbers beat expectations and management raised guidance. Ocwen Financial is bid higher, as well, after agreeing to buy servicing rights on another $78 billion of home loans.
Share this article with your friends


Related Stories

SPX

Stocks keep falling after GDP miss

January 30, 2015

S&P 500 futures are down 0.7 percent, while European indexes are fractionally lower. Asia closed mostly lower, led by drops of 1.5 percent to 2 percent in Mumbai and Shanghai.

SPX

GDP, MasterCard on busy calendar

January 30, 2015

The gross domestic product report, due at 8:30 a.m. ET, is especially important because it's the first estimate for the final three months of 2014.

SPX

Stocks trying to recover from selloff

January 29, 2015

S&P 500 futures were up 0.5 percent but are now up just slightly. Europe has also surrendered earlier gains. Japan and China both fell more than 1 percent overnight.

SPX

Jobless claims, earnings on docket

January 29, 2015

Initial unemployment filings, the first item on this side of the Atlantic, are expected to show a reading of 301,000, compared with 307,000 in the previous period.

SPX

Stocks rally on earnings before Fed

January 28, 2015

S&P 500 futures are up 0.4 percent, while strong earnings from Apple have lifted the Nasdaq 100 more than 1 percent. European indexes are modestly lower, and Asia was little-changed overnight.

OptionsHouse

Premium Services

Archived Webinar

Option Money Machine Winter Classic

Education & Strategy

The rolling technique

In the January 7th edition of Advantage Point, we initiated the purchase of a second week-out GOOGL 535 put at...

View more education articles »